Disbarred Broward Attorney Todd Herman Arrested on Fraud, Money Laundering Charges

Todd J. Herman, a disbarred lawyer who once practiced personal-injury law in Broward County, was arrested in early July 2026 and now faces a series of felony charges tied to money he allegedly withheld from former clients. Prosecutors accuse Herman of obtaining property by fraud, money laundering, an illegal financial-structuring violation, and misapplication of insurance-premium funds, according to arrest records. A judge set his bond at $200,000. The charges are allegations that remain pending in court, and Herman is presumed innocent unless and until he is convicted.

The case cuts to the core of the trust that clients place in the lawyers who represent them, and it lands in one of Florida's most active markets for personal-injury litigation. Former clients accused Herman of keeping settlement funds that were owed to them, with the alleged conduct spanning cases in both Miami-Dade and Broward counties. For the injured people at the center of those cases, a settlement is often meant to cover medical bills, lost wages, and the costs of recovery, which makes any allegation that the money never reached them especially consequential.

The arrest also draws attention to the safeguards that are supposed to keep client money separate from a lawyer's own finances, and to the state institutions that police the legal profession in Florida. Herman has already been disbarred, meaning he no longer holds a license to practice law, and the criminal case now moving through the courts is separate from that professional discipline. What follows is an account of the charges, the systems built to protect clients, and the process that lies ahead.

The Charges Herman Faces

Herman was taken into custody in early July 2026 in connection with crimes he allegedly committed while working as a personal-injury attorney in Broward County. The charges he faces include obtaining property by fraud, money laundering, an illegal financial-structuring violation, and misapplication of insurance-premium funds. Together, the counts describe a set of allegations that reach beyond a single transaction and instead point to how money allegedly moved once it came into his hands.

Each charge carries a distinct legal meaning. Obtaining property by fraud generally refers to acquiring something of value through deception. Money laundering involves conducting financial transactions designed to conceal the source or nature of funds. An illegal financial-structuring violation typically concerns arranging financial activity to evade reporting requirements. Misapplication of insurance-premium funds addresses the improper handling of money connected to insurance. Prosecutors have not, in these public records, resolved the case against Herman, and the counts represent accusations rather than findings.

The former clients who came forward accused Herman of withholding settlement funds that were owed to them. In personal-injury practice, a settlement is the negotiated resolution of a claim, and the proceeds are meant to be distributed to the client after costs and fees are accounted for. The allegation that those proceeds were withheld is the thread that ties the individual complaints to the broader criminal counts.

A judge set Herman's bond at $200,000, a figure that reflects the seriousness with which the court treated the allegations at the outset of the case. Bond is not a penalty and is not a measure of guilt. It is a condition meant to secure a defendant's return to court, and the presumption of innocence remains intact throughout the proceedings that follow an arrest.

How Client Settlement Money Is Supposed to Be Held

When a lawyer settles a case on behalf of a client, the money that arrives is not the lawyer's to spend. Under long-standing rules governing the legal profession in Florida, funds that belong to clients must be kept separate from the lawyer's own operating money. This separation is the foundation of the trust relationship between an attorney and the people they represent, and it is meant to ensure that a client's recovery is preserved and delivered.

Lawyers accomplish this separation through what are known as trust accounts. A trust account holds money that belongs to clients or to third parties, apart from the accounts a firm uses to pay its own bills. When a settlement check arrives, it is generally deposited into the trust account, and the client's share is disbursed from there once any liens, costs, and agreed fees are settled. The lawyer is expected to keep detailed records so that every dollar can be traced to the client it belongs to.

It is against this backdrop that the allegations in Herman's case take shape. The accusation that a lawyer withheld settlement funds owed to clients strikes directly at the safeguards designed to keep such money protected and separate. Whether the state can prove that allegation is a question for the court, and Herman is entitled to the presumption of innocence as the case proceeds.

The Role of the Florida Bar and Disbarment

The Florida Bar is the statewide organization that regulates attorneys and enforces the rules of professional conduct. Every lawyer who practices in the state is subject to its oversight, and the Bar investigates complaints, brings disciplinary matters, and recommends sanctions when the rules are violated. Its role is distinct from that of prosecutors, and its proceedings are aimed at protecting the public and maintaining the integrity of the profession rather than at imposing criminal punishment.

Disbarment is the most severe sanction the disciplinary system can impose. It strips a lawyer of the license to practice, removing the person from the profession. Herman is described as a disbarred lawyer, which means he has already lost that license through the professional-discipline process. Disbarment reflects a determination within the regulatory system and is separate from any criminal case that may follow the same underlying conduct.

The two tracks can run in parallel or in sequence. A lawyer may face discipline from the Bar and, independently, criminal charges brought by state prosecutors, because each system answers a different question. The Bar asks whether a lawyer should be permitted to keep practicing. The criminal courts ask whether the state can prove, beyond a reasonable doubt, that a crime was committed. A disbarment does not resolve the criminal allegations, and the criminal allegations remain unproven until adjudicated.

For clients, the existence of both systems is meant to provide layered accountability. The disciplinary process can remove a lawyer who has violated professional rules, while the criminal process can address conduct that the state contends crossed into criminality. In Herman's case, the disbarment has already occurred, and the criminal charges are the matter now pending before the court.

Attorney Trust Fraud and Its Wider Pattern

Allegations that a lawyer withheld client settlement money fall into a category of misconduct that centers on the misuse of trust funds. Because attorneys are entrusted with money that belongs to others, the rules surrounding trust accounts are strict, and departures from those rules are treated seriously by both regulators and, when applicable, prosecutors. The safeguards exist precisely because the opportunity to mishandle client funds is built into the way legal settlements flow through a lawyer's hands.

The counts Herman faces sketch a broader picture than a simple failure to pay a client. Money laundering and an illegal financial-structuring violation, as alleged, concern how money is moved and reported, not merely whether it was withheld. Misapplication of insurance-premium funds points to money connected to insurance being handled improperly. Prosecutors said the conduct alleged in the case spans multiple client matters, which distinguishes it from an isolated dispute over a single settlement.

None of the counts has been proven. The arrest report and the charges reflect the state's accusations, and the case will be tested through the ordinary criminal process. Herman is presumed innocent, and the burden rests with prosecutors to establish the allegations in court.

The South Florida Setting

The case is rooted in South Florida, with the alleged conduct spanning cases in Broward and Miami-Dade counties. Herman worked as a personal-injury attorney in Broward County, whose county seat is Fort Lauderdale, and the accusations extend into neighboring Miami-Dade. The two counties together form the densely populated core of the region and account for a large share of the state's legal activity.

Broward County anchors a court system that handles a heavy volume of civil litigation, including the kind of personal-injury claims at the heart of this case. Fort Lauderdale sits at the center of that system, and cases arising in the county move through its courthouse. The geography matters because the alleged withholding of settlement funds is said to have touched clients whose matters were handled in this South Florida legal market.

Miami-Dade, immediately to the south, is Florida's most populous county and a legal hub in its own right. The fact that the alleged conduct is said to reach across both counties reflects the interconnected nature of legal practice in the region, where attorneys and clients often operate across county lines. That cross-county span is one of the features prosecutors have pointed to in describing the scope of the accusations.

Protections for Consumers and Clients

Florida maintains protections designed to shield clients when a lawyer is accused of mishandling their money. The disciplinary system overseen by the Florida Bar allows clients to file complaints against attorneys, and it provides a mechanism for removing lawyers who violate professional rules. That system is one of the primary avenues through which the public can seek accountability when trust is broken.

Beyond discipline, the criminal justice system can address conduct that the state contends amounts to a crime. The charges against Herman illustrate how prosecutors can pursue allegations involving fraud, money laundering, financial structuring, and the misapplication of funds. These criminal avenues operate alongside the professional-discipline process, giving the state more than one tool to respond to alleged misconduct involving client money.

Consumers who work with attorneys can take practical steps to protect themselves, including keeping records of their settlements, asking for clear accountings of how funds are distributed, and confirming the status of a lawyer's license. Because settlement money is meant to be held in trust and disbursed with documentation, a clear paper trail can help clients understand where their money stands and identify problems early.

What's Next

The criminal case against Herman now moves into the standard stages of the Florida court process. Following an arrest, a defendant is formally advised of the charges and the matter proceeds through preliminary steps that can include the filing of formal charges by prosecutors, arraignment, and the exchange of evidence between the state and the defense. Herman, like any defendant, retains the right to contest the allegations and to be represented by counsel.

The $200,000 bond set at the outset governs the conditions under which Herman may remain out of custody while the case is pending. As the matter advances, the court will address motions, scheduling, and the legal questions raised by both sides. The pace of these steps varies from case to case, and no outcome is predetermined by the arrest or the charges alone.

Throughout the process, the presumption of innocence remains the governing principle. Prosecutors carry the burden of proving each charge, and the accusations of obtaining property by fraud, money laundering, illegal financial structuring, and misapplication of insurance-premium funds are allegations that must be tested in court. A conviction requires proof beyond a reasonable doubt, and Herman is entitled to defend against every count.

For former clients and for observers across South Florida, the case will unfold over the coming months as it works through the Broward court system. The proceedings will determine whether the state can substantiate its allegations, and they will be watched by a community in which the trust between lawyers and clients, and the money that flows through it, remains a matter of real consequence.